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  • Writer's pictureChristian Malnawa

Tabuk Hydropower Corp. plans forging partnership with KAELCO to reduce electricity rates

Tabuk City, Kalinga – A partner by the provincial government unit in their bid to cut down energy bills in the province is now negotiating with the Kalinga Electric Cooperative for a possible partnership in the implementation of the Upper Tabuk Hydropower Plant Project (UTHPP).

DPJ Engineers and Consultants Engineer Daniel Peckley Jr. relayed through the Provincial Information Office that he visited the cooperative on February 17 and presented Tabuk Hydro Energy (THE) Corporation plans of involving them in the establishment of the hydropower project in Kalinga.

Peckley told PIO Kalinga that they are now looking for possible means of how an energy contract would be pursued between them and the cooperative.

“…we would like to offer to them [KAELCO] nu mabalin through some arrangements or through some provisions or ag-consult ti lawyers nu kasanu, say we are going to sign an energy contract with them. We [also] want KAELCO to own the transmission line in one way or another,” Engr. Peckley shared.

If able to purchase power directly at the proposed power plant project, the electricity rate according to Peckley would be reduced.

Owning a transmission line, meantime will help KAELCO pay lesser value-added tax (VAT) and reduce transmission costs. Moreover, energy losses are lowered when the transmission line’s location is close to the benefitting electricity provider.

PLGU’s partnership with THE Corporation

By virtue of Resolution no. 2022-333, the provincial government particularly the governor, was earlier given the authority to enter into a public-private partnership with Tabuk Hydro Energy (THE) Corporation to pursue the hydropower project.

After receiving approval from the legislative body, the local government will put a total of P158 million into the project considering that with pursuit, it is anticipated that this effort will "advance economic development, improve energy security, improve access to energy and low-cost electricity as well as to mitigate climate change."

By allocating said amount, the local government would be guaranteed 20 percent ownership of the project and 20 percent of its net income, which is anticipated to be roughly P30.9 million per year during the project's first 25 years of operation.

Hydropower projects in Pinukpuk and Balbalan

Meantime, another corporation is venturing into putting up hydropower plants in Pinukpuk and Balbalan after gaining the right to become the re-developer from the country’s Department of Energy.

JBD Waterpower Inc. (JWPI), a company involved in implementing renewable energy projects is now working on the possible rise of the 49 Megawatts Saltan D River hydropower plant (HPP), 45 Megawatts Saltan River HPP, and 40 Megawatts Mabaca River HPP.


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